{"id":5614,"date":"2021-08-19T19:47:26","date_gmt":"2021-08-19T19:47:26","guid":{"rendered":"https:\/\/www.crameranderson.com\/?p=5614"},"modified":"2021-08-20T19:34:12","modified_gmt":"2021-08-20T19:34:12","slug":"surfside-collapse-raises-issues-for-connecticut-condo-owners-associations","status":"publish","type":"post","link":"https:\/\/www.crameranderson.com\/surfside-collapse-raises-issues-for-connecticut-condo-owners-associations\/","title":{"rendered":"Surfside Collapse Raises Issues for Connecticut Condo Owners, Associations"},"content":{"rendered":"<p><img decoding=\"async\" class=\"alignleft wp-image-5617\" src=\"https:\/\/www.crameranderson.com\/wp-content\/uploads\/2021\/08\/CondosassociationboardConnecticut-1024x680.jpg\" alt=\"condo, condos, Connecticut\" width=\"390\" height=\"259\" \/>The <a href=\"https:\/\/www.nbcnews.com\/news\/us-news\/bodycam-video-shows-desperate-moments-after-surfside-building-collapse-n1275869\">collapse of the 12-story Champlain Towers South<\/a> condominiums in Surfside, Fla., has cycled out of the nightly news headlines, but the issues underlying the tragedy remain pressing\u2014including for condo owners and associations in Connecticut.<\/p>\n<p>In <a href=\"https:\/\/slate.com\/business\/2021\/07\/miami-building-collapse-condo-boards.html?via=rss_socialflow_twitter\">a July story<\/a>, Slate Magazine pointed out that the rise of condos as a popular housing option began with the adoption in 1961 of the National Housing Act, which favored multifamily buildings as a way of increasing the affordability of home ownership. \u201cBy the \u201970s and \u201980s, the country was routinely building (or converting) more than 100,000 condos or co-op units every year,\u201d Slate said.<\/p>\n<p>That timeline suggests condos of all types and sizes have reached an age where a variety of structural issues may arise, depending on how committed and diligent condo boards and associations have been in handling is necessary repairs and upgrades over the years.<\/p>\n<p>An August <a href=\"https:\/\/www.nbcnews.com\/news\/us-news\/how-florida-condo-associations-wielded-political-power-surfside-collapse-n1276681\">NBC News report<\/a> said the Surfside collapse \u201chas drawn fresh attention to loopholes that allow condo associations to delay inspections, renovations and compliance with directives they say are too expensive or burdensome.\u201d<\/p>\n<p>At the heart of the issue is whether condominiums are safe and well-maintained, and whether repairs and upgrades are done in a proper, equitable and cost-efficient way\u2014and that depends on how condo developments are managed.<\/p>\n<p>There are many concerns by owners when it comes to the powers and actions of condominium associations and boards\u2014ranging from political squabbles to budgetary priorities and concerns\u2014but let\u2019s focus on safety.<\/p>\n<p>The Community Associations Institute (CAI) <a href=\"https:\/\/www.caionline.org\/PressReleases\/Pages\/COMMUNITY-ASSOCIATIONS-INSTITUTE-%28CAI%29-SHARES-CONDO-SAFETY-RESOURCES-IN-WAKE-OF-SURFSIDE-TRAGEDY.aspx\">shared condo safety resources<\/a> in the wake of Surfside that advise condo residents to ask board members, and\/or the association manager, these questions:<\/p>\n<ul>\n<li><span style=\"color: #333399;\">Is our building safe?<\/span><\/li>\n<li><span style=\"color: #333399;\">What is being done to protect our health, safety, and investment?<\/span><\/li>\n<li><span style=\"color: #333399;\">Does our community have a reserve study to plan for the repair and replacement of major components owned by the community? When was this reserve study last updated?<\/span><\/li>\n<li><span style=\"color: #333399;\">Does our community have a funding plan for the repair and replacement of major components owned by the community?<\/span><\/li>\n<li><span style=\"color: #333399;\">Do our buildings need an inspection by a professional engineer to evaluate the structural integrity of the building?<\/span><\/li>\n<li><span style=\"color: #333399;\">Are critical components in the building such as balconies, stairwells, etc., included in the reserve study?<\/span><\/li>\n<li><span style=\"color: #333399;\">Will a special assessment be required to fund the repair and replacement of any components that are not included in the reserve study?<\/span><\/li>\n<\/ul>\n<p>The CAI also generally recommends property owners know their rights and responsibilities, and ask the association and board members questions about important issues and concerns, as well as agreeing to fund reserves for repair and replacement of major components.<\/p>\n<p>Condominium association boards, meanwhile, have a fiduciary duty to protect their community, as well as many other responsibilities, which are <a href=\"https:\/\/www.cga.ct.gov\/2014\/rpt\/pdf\/2014-R-0162.pdf\">delineated in a Connecticut Office of Legislative Research report<\/a>.<\/p>\n<p>Issues and controversies that divide condo owners and association boards in Connecticut are not uncommon, in part because the statutes and laws governing condos are complex, as illustrated by a Judicial Branch <a href=\"https:\/\/www.jud.ct.gov\/lawlib\/law\/condominiums.htm\">guide to Connecticut condominium laws<\/a> that are encoded in the <a href=\"https:\/\/www.cga.ct.gov\/current\/pub\/chap_828.htm\">Common Interest Ownership Act<\/a>, commonly known as CIOA.<\/p>\n<p>The primary powers of condo boards are listed as:<\/p>\n<ol>\n<li><span style=\"color: #333399;\">adopting and amending rules (subject to certain restrictions);<\/span><\/li>\n<li><span style=\"color: #333399;\">collecting common expense assessments;<\/span><\/li>\n<li><span style=\"color: #333399;\">imposing charges or interest for late payments, or fines for violations of the association\u2019s governing instruments;<\/span><\/li>\n<li><span style=\"color: #333399;\">hiring managing agents and other employees, agents, and independent contractors; and<\/span><\/li>\n<li><span style=\"color: #333399;\">regulating the use and modification of common elements.<\/span><\/li>\n<\/ol>\n<p>Regarding the adoption of budgets, the CIOA requires that boards schedule a vote of condo owners, and says a budget is approved unless a majority votes against it. Boards are also tasked with issuing special assessments, such as spending for structural repairs, and some special assessments can take effect without the approval of condo owners.<\/p>\n<p>The impact of monthly association fees, and the specter of unexpected assessments for improvement projects, caught the notice of National Public Radio in a July story entitled \u201c<a href=\"https:\/\/www.npr.org\/2021\/07\/19\/1016940192\/why-steady-low-condo-fees-should-raise-a-flag-and-other-tips-for-owners-and-buye\">Why Steady, Low Condo Fees Should Raise A Flag \u2013 And Other Tips For Owners And Buyers<\/a>.\u201d<\/p>\n<p>\u201cThe monthly homeowner association dues &#8230; we call that the \u2018fool&#8217;s gold,\u2019 because that\u2019s a number that people like to be low. The job of the board of directors is to provide for the needs of the association, and those needs accumulate over time,\u201d\u00a0Robert Nordlund, founder and CEO of Association Reserves, told NPR, while offering advice on where potential buyers should look for warning signs. \u201cDeterioration is real, and so the number to look for is the association\u2019s \u2018percent funded.\u2019 That&#8217;s the indicator of the combined physical and financial health of the building,\u201d Nordlund said in the story.<\/p>\n<p>Condos are a great living environment for many and offer attractive benefits such as maintenance by others\u2014but there are potential downsides and pitfalls. As with all real estate matters, due diligence and careful consideration of all the factors are paramount when purchasing and throughout ownership.<\/p>\n<p><img decoding=\"async\" class=\"alignright wp-image-1428 size-thumbnail\" src=\"https:\/\/www.crameranderson.com\/wp-content\/uploads\/2013\/05\/dolores-banner-150x150.jpg\" alt=\"condo, condos\" width=\"150\" height=\"150\" \/>Cramer &amp; Anderson\u2019s real estate attorneys have decades of experience in handling condo transactions, as well as representing condo associations and boards. We encourage condo owners, prospective buyers, and board members with issues or concerns to reach out by contacting me via the button below, or connecting with any member of our <a href=\"https:\/\/www.crameranderson.com\/residential-commercial-real-estate-law\/\">Residential &amp; Commercial Real Estate Law<\/a> team.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The collapse of the 12-story Champlain Towers South condominiums in Surfside, Fla., has cycled out of the nightly news headlines, but the issues underlying the tragedy remain pressing\u2014including for condo owners and associations in Connecticut. In a July story, Slate Magazine pointed out that the rise of condos as a popular housing option began with [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3],"tags":[3289,3290,3288,3287,6,927],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Surfside Collapse Raises Issues for Connecticut Condo Owners, Associations - Cramer &amp; Anderson LLP<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.crameranderson.com\/surfside-collapse-raises-issues-for-connecticut-condo-owners-associations\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Surfside Collapse Raises Issues for Connecticut Condo Owners, Associations - Cramer &amp; Anderson LLP\" \/>\n<meta property=\"og:description\" content=\"The collapse of the 12-story Champlain Towers South condominiums in Surfside, Fla., has cycled out of the nightly news headlines, but the issues underlying the tragedy remain pressing\u2014including for condo owners and associations in Connecticut. 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